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    Dell Technologies subsidiary VMware will invest $2 billion in India

    Synopsis

    Patrick Gelsinger, CEO of VMware, said the funds will primarily be used for building talent to grow the company’s R&D centre and sales teams in Bengaluru, Pune and Chennai.

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    VMware did not share how much revenue it generates from India, but said the country’s growth rate exceeds its overall global growth rate of 12%.
    MUMBAI: Dell Technologies subsidiary VMware will invest $2 billion in India over the next five years to expand its business and research capability.

    Patrick Gelsinger, CEO of VMware, said the funds will primarily be used for building talent to grow the company’s R&D centre and sales teams in Bengaluru, Pune and Chennai.

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    "We are building on the good momentum. We will expand our innovation and R&D and overall business capacity to support our global capability," said Gelsinger. “We will expand our go-to-market capacity to reach more into the marketplace. It is primarily the people resources that we are accounting for in the $2 billion. We will either be opening new offices or expanding the current ones to support those people."

    VMware, which provides compute, cloud, mobility, networking and security infrastructure software to businesses globally, will also hire people for customer support, information technology and back-office teams.

    In India, the company has about 5,000 employees, with the majority engaged in research and product development. Gelsinger did not say how many people it will add in India.

    Over the last several years, VMware has increased its product and solution offerings beyond compute virtualisation to include offerings that allow organisations to manage information technology resources across private clouds and complex multi-cloud and multi-device environments. India plays a key role in the global strategy by helping the company test new products at scale.

    VMware did not share how much revenue it generates from India, but said the country’s growth rate exceeds its overall global growth rate of 12%.

    A part of the $2 billion budget will also fund an HR project with an organisation called ‘Women Who Code’ to train 15,000 women in VMware products over the next two years. The company will absorb some of these women but most will be hired by companies which use VMware products, helping the company increase acceptability among developers.

    VMware is looking to sell its products to the Indian government, besides the telecom and banking and financial services sectors. Among its top customers in India are State Bank of India and Bharti Airtel.

    VMware's product portfolio supports and addresses the four key IT priorities: modernising data centres, integrating public clouds, and enabling digital workspaces and security.

    Brokerage JP Morgan listed possible slower-than-expected ramp up of VMware’s emerging product areas as a risk factor. “Emerging product categories, including software-defined technologies, EUC, and hyper-converged infrastructure, could experience a slower than expected ramp-up period than is factored into the company’s valuation,” said JP Morgan analyst Mark Murphy.
    The Economic Times

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